Continental Gold to drill shear zones at Trophy bet

Crews have been mobilized and drilling is expected to begin in July at Continental Gold Corp.’s (VSE) Trophy property in northwestern B.C. The $2-million exploration program will follow up a successful prospecting program which outlined three gold-silver bearing shear zones with a combined strike length of 20 miles on the claims.

The 60-sq-mile property is located 90 miles southwest of Dease Lake and 12 miles north of the Iskut River area where Delaware Resources and Skyline Explorations are building two gold mines.

Geology on the Continental ground is similar to that occurring in the Iskut camp, Robert Dickinson, managing director of Continental, explained to The Northern Miner. Gold occurs as fracture fillings and disseminations in shear zones proximal to and within syenitic intrusives.

Mapping and sampling of the three zones on the property returned gold values ranging up to 0.94 oz gold per ton across 3.3 ft in the Ptarmigan north extension zone. A continuous 185-ft chip sample across the Ptarmigan A zone assayed 0.07 oz. Included in the zone were several narrower sections of higher grading material. These include 26.1 ft assaying 0.16 oz gold and 14 oz silver. Another 6.5-ft section assayed 0.37 oz gold and 14.68 oz silver.

Based on the width of some of the structures and their length, Dickinson expects the company to receive strong resultsfrom the drill program. Homestake Mining Co., is also bullish on the project. The big U.S. gold miner has completed a private placement with Continental, purchasing 500,000 units for $1.5 million. Each $3 unit consists of one common share and a warrant giving Homestake the right to purchase another share at $4.50 until Sept 30.

Homestake’s association with Dickinson and Continental President Robert Hunter is not new. Earlier this year, Homestake acquired control of North American Metals from Hunter and Dickinson, who founded the company and remain on North American’s board. The latter company is building a gold mine near Dease Lake, B.C., with Chevron.